HomeMy WebLinkAbout033878 ORD - 02/24/2026Ordinance authorizing execution of a Groundwater Rights Purchase and Sale
Agreement with Nancy Fleming Shelton, Trustee of the Nancy Fleming Shelton
Trust u/w/o Roger Fleming, Zorilla-Malone Properties, Ltd, Lynn O'Connor Carter,
Nancy O'Connor and T. Michael, each Individually and as Co -Trustees of the Mary
Madeline O'Connor Family Exempt Trust and the Mary Madeline O'Connor Family
Non -Exempt Trust for purchase of Li Ranch as part of the Evangeline Groundwater
Project in an amount up to $38,000,000.00; and amending the FY 2026 Capital
Budget, with FY 2026 funding available from Water Capital Fund.
WHEREAS, there is a statutory exception for this procurement in Local Government
Code, Section 252.022(a)(2), as this purchase is necessary to preserve or protect the
public health or safety of the City's residents;
WHEREAS, City Council is concurrently authorizing a Reimbursement Resolution and
will authorize the sell of bonds to finance the purchase of the groundwater rights from
Nancy Fleming Shelton, Trustee of the Nancy Fleming Shelton Trust u/w/o Roger
Fleming, Zorilla-Malone Properties, Ltd, Lynn O'Connor Carter, Nancy O'Connor and T.
Michael, each Individually and as Co -Trustees of the Mary Madeline O'Connor Family
Exempt Trust and the Mary Madeline O'Connor Family Non -Exempt Trust ("Li Ranch")
for the Evangeline Groundwater Project;
WHEREAS, on January 27, 2026, City Council authorized execution of an Option
Agreement with Li Ranch under Motion M2026-009 in the amount of $315,400 per year;
WHEREAS, City Council finds that this contract is reasonable and necessary to furnish
the ratepayers with water service; and
WHEREAS, City Council finds that recovery of the cost of this contract through the utility
rates is reasonable and necessary to preserve the utility's financial integrity.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
Section 1. The City Council specifically finds that the foregoing statements included in
the preamble of this resolution are true and correct and adopts such findings for all intents
and purposes related to the authorization of this procurement.
SECTION 2. Funding in the amount of $38,000,000.00 is appropriated into the Water
Capital Fund.
SECTION 3. The Corpus Christi FY2025-2026 Capital Budget adopted by Ordinance No.
033731 is amended to increase revenues and expenditures by $38,000,000.00
SECTION 4. The City Manager or designee is authorized to execute a Groundwater
Rights Purchase and Sale Agreement for the purchase of approximately 6,308 acres of
groundwater rights located in San Patricio County from Li Ranch in an amount up to
$38,000,000.00.
SECTION 5. Closing of the transaction is authorized when Li Ranch receives final, non -
appealable permits required under the San Patricio County Groundwater Conservation
SCANNED
03 3 1
District's ("District") rules for (1) a Production/Operating Permit, (2) drilling a total of 6 new
groundwater wells on the Real Property (the "Drilling Permits") of sufficient design to
produce water for municipal use, and (3) a transportation permit authorizing the transport
of the permitted acre per feet of Groundwater authorized under the Production Permit
outside the boundaries of the District for use within the City of Corpus Christi's service
area (the "Transport Permit"). (These permits are required by the City of Corpus Christi.)
INTRODUCED and APPROVED on the 11 tay of , 2026.
PASSED and APPROVED on the .� l' day of 1, 2026.
ATTEST:
Paulette Guajardo, Ma or Rebecca I-luerta, City Secretary
03 3 87 8
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of the Finance & Procurement Department of the City of Corpus Christi, Texas (or his/her
duly authorized representative), hereby certify to the City Council and other appropriate officers that the
money required for the current fiscal year's portion of the contract, agreement, obligation or
expenditure described above is in the Treasury to the credit of the Fund specified above, from which it is
to be drawn, and has not been appropriated for any other purpose. Future payments are subject to
annual appropriation by the City Council.
City Council Action Date: February 17, 2026 Legistar Number: 26-0225
Agenda Item: Ordinance authorizing execution of a Groundwater Rights Purchase and Sale
Agreement with Nancy Fleming Shelton, Trustee of the Nancy Fleming Shelton Trust u/w/o Roger
Fleming, Zorilla-Malone Properties, Ltd, Lynn O'Connor Carter, Nancy O'Connor and T. Michael, each
Individually and as Co -Trustees of the Mary Madeline O'Connor Family Exempt Trust and the Mary
Madeline O'Connor Family Non -Exempt Trust for purchase of Li Ranch as part of the Evangeline
Groundwater Project in an amount up to $38,000,000.00; and amending the FY 2026 Capital Budget,
with FY 2026 funding available from Water Capital Fund.
Amount Required: $38,000,000.00
Fund Name
Accounting Unit
Account No.
Activity No.
Amount
Water Evangeline CIP 2026
4493-45-89
530040
27150
$38,000,000.00
Total
$38,000,000.00
❑ Certification Not Required
Director of the Finance & Procurement Department
Date: 7 - d 0 J-6